CAPÍTULO V. RESULTADOS 5.1 ESTRATIGRAFÍA
5.2 ANÁLISIS DE MICROFACIES
5.2.1 Microfacies de la Sierra Banco de Lucero, Chihuahua Microfacies 1 (MF1):
Deduct the following items from the amount at Subtotal.
Section 46FA deduction for flow-on dividends Write at C Section 46FA deduction for flow‑on dividends any amounts claimed as a deduction during the 2012–13 income year that are deductible under section 46FA of the ITAA 1936. If an amount is reported at C ,
complete and attach an International dealings schedule 2013.
This deduction is allowable in certain cases where a non-portfolio dividend that is not fully franked is on-paid by a resident company to its non-resident parent.
If a deduction is claimed under section 46FA, the claiming entity must maintain an unfranked non-portfolio dividend account under section 46FB of the ITAA 1936 and complete Do you have an unfranked non‑portfolio dividend account (section 46FB ITAA 1936) question 43
on International dealings schedule 2013.
Deduction for decline in value of depreciating assets
If the company is not a small business entity using the simplified depreciation rules, write the deduction for decline in value of most depreciating assets for taxation purposes at F Deduction for decline in value of depreciating assets. This amount is often different from the amount of depreciation calculated for accounting purposes written at X Depreciation expenses item 6 and added back at WNon‑deductible expenses item 7.
If the company has allocated depreciating assets to a low-value pool, include the deduction for decline in value of those assets at F Deduction for decline in value of depreciating assets.
If a depreciating asset is used in R&D activities, the notional decline in value amount will form part of your notional R&D deduction. Eligible companies can claim this notional R&D deduction amount in calculating the R&D tax offset. Refer to 21 Research and development tax incentive
on page 70 of these instructions and the Research and development tax incentive schedule 2013 instructions for further information. If a decline in value amount is included as a notional R&D deduction, add back at D Accounting expenditure in item 6 subject to R&D tax incentive
item 7 any related depreciation expenses included at
X Depreciation expenses item 6.
If you have elected to use the hedging tax-timing method provided for in the TOFA rules and you have a gain or loss
from a hedging financial arrangement used to hedge risks in relation to a depreciating asset, work out separately: n the deduction for decline in value of depreciating assets
(include this at F Deduction for decline in value of
depreciating assets), and
n your gain or loss on the hedging financial arrangement; include this at either:
– E TOFA income from financial arrangements not
included in item 6, item 7 or
– W TOFA deductions from financial arrangements not included in item 6 item 7.
Include the decline in value of water facilities at N Landcare operations and deduction for decline in value of water facility item 7.
For information about how to work out deductions for decline in value, see appendix 6.
If the company is a small business entity using the simplified depreciation rules, include deductions for depreciating assets at X Depreciation expenses item 6. If the company is not using the simplified depreciation rules, and is continuing to claim a deduction for any prior pool, this deduction should be included at
X Depreciation expenses item 6.
Practice Statement PS LA 2003/8 provides guidance on two straightforward methods that taxpayers carrying on a business can use to help them determine whether expenditure incurred to acquire certain low-cost assets is to be treated as revenue or capital expenditure. Subject to certain qualifications, the two methods cover expenditure below a threshold and the use of statistical sampling to estimate total revenue expenditure on low-cost items. Under the threshold rule, low-cost items with a typically short life costing $100 or less are assumed to be revenue in nature and are immediately deductible. The sampling rule allows taxpayers with a low-value pool to use statistical sampling to determine the proportion of the total purchases of low-cost tangible assets that are revenue expenditure. Forestry managed investment scheme deduction DEFINITIONS
The company is an initial participant in an FMIS if: n it obtained its forestry interest in the FMIS from the
forestry manager of the scheme, and
n its payment to obtain the forestry interest in an FMIS results in the establishment of trees.
The company is a subsequent participant if it obtains an interest in a forestry managed investment scheme through secondary market trading. This means it acquired its interest other than as an initial participant, usually by purchasing that interest from an initial participant in the scheme.
The forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.
A forestry interest in an FMIS is a right to benefits produced by the FMIS (whether the right is actual, prospective or contingent, and whether it is enforceable or not).
The company may be able to claim a deduction at this item for payments made to an FMIS if:
n the company currently holds a forestry interest in an FMIS, or held a forestry interest in an FMIS during the income year, and
n the company paid an amount to a forestry manager of an FMIS under a formal agreement.
If the company is an initial participant it can claim initial and ongoing payments at this item.
If the company is a subsequent participant, it cannot claim a deduction for the amount paid for acquiring the interest. The company can only claim a deduction for ongoing payments.
The company can only claim a deduction at this item if the forestry manager has advised you that the FMIS satisfies the 70% direct forestry expenditure rule in Division 394 of the ITAA 1997.
If the company is an initial participant, it cannot claim a deduction if it disposed of the forestry interest in an FMIS within four years after the end of the income year in which a payment was first made. However the deduction will be allowed if the disposal occurs because of circumstances outside the control of the company, provided the company could not have reasonably foreseen the disposal happening when it acquired the interest. Disposals that would
generally be outside the company’s control include compulsory acquisition, insolvency of the company or the scheme manager, or cancellation of the interest due to fire, flood or drought.
Excluded payments
The company cannot claim a deduction at this item for any
of the following payments: n payments for borrowing money
n interest and payments in the nature of interest (such as a premium on repayment or redemption of a security, or a discount of a bill or bond)
n payments of stamp duty n payments of GST
n payments that relate to transportation and handling of felled trees after the earliest of the:
– sale of the trees
– arrival of the trees at the mill door – arrival of the trees at the port
– arrival of the trees at the place of processing (other than where processing happens in-field) n payments that relate to processing
n payments that relate to stockpiling (other than in-field stockpiling).
Write at U Forestry managed investment scheme deduction the total amount of deductible payments made to an FMIS.
Non-deductible expenditure and the deductible payments made to an FMIS must also be included at
W Non‑deductible expenses item 7 to the extent that they have been included as an expense at item 6.
Immediate deduction for capital expenditure Companies in the mining, petroleum and quarrying industries should write at E Immediate deduction for capital expenditure the total amount of capital expenditure (other than on depreciating assets) claimed as an immediate deduction for:
n exploration and prospecting
n rehabilitation of mining or quarrying sites n payment of petroleum resource rent tax. n payment of minerals resouwrce rent tax.
For more information about these deductions, see Guide to depreciating assets 2013.
Deduction for project pool
Write at H Deduction for project pool the total amount of the company’s deductions for project pools.
If a project is abandoned, sold or otherwise disposed of, the company can deduct the project pool value at that time. Include this deduction at H.
Include the expenditure allocated to the project pool for the income year at WNon‑deductible expenses item 7 to the extent that it has been included as an expense at item 6. For more information about project pools, see appendix 6.
Capital works deductions
Write at I Capital works deductions the deduction claimed for capital expenditure on buildings, which includes eligible capital expenditure on extensions, alterations or improvements. Exclude capital expenditure for mining infrastructure buildings and timber milling buildings. For more information on capital works deductions, see
appendix 2. Commercial debt forgiveness provisions may affect the calculation of some deductions, see appendix 1. Section 40-880 deduction
Write at Z Section 40‑880 deduction the total of the company’s deductions allowable under section 40-880 of the ITAA 1997.
The expenditure deductible under section 40-880 must be included at WNon‑deductible expenses item 7 to the extent that it has been included as an expense at item 6. For information about section 40-880 deductions, see
appendix 6.
Landcare operations and deduction for decline in value of water facility
Write at N Landcare operations and deduction for decline in value of water facility the company’s total deductions for landcare operations expenses and for water facilities. Do not include the deduction for the decline in value of water facilities at F Deduction for decline in value of depreciating assets item 7.
The expenditure on landcare operations and water facilities must be included at WNon‑deductible expenses item 7 to the extent that it has been included as an expense at item 6.
For information about deductions for landcare operations and water facilities, see appendix 6.
Deduction for environmental protection expenses Write at O Deduction for environmental protection expenses the amount of allowable expenditure on environmental protection activities.
The deductible expenditure on environmental protection activities must also be included at W Non‑deductible expenses item 7 to the extent that it has been included as an expense at item 6.
For information about deductions for expenditure on environmental protection activities, see appendix 6. Offshore banking unit adjustment
Only use P Offshore banking unit adjustment if the company has been declared to be an offshore banking unit (OBU) by the Treasurer under subsection 128AE(2) of the ITAA 1936, otherwise disregard P Offshore banking unit adjustment.
If you complete P, you are required to complete an International dealings schedule 2013. For more information, go to ato.gov.au and search for International dealings schedule instructions 2013.
Subject to certain exceptions, an OBU is effectively taxed at the rate of 10% on income derived from offshore banking (OB) activities. In calculating an OBU’s total income for the year, include gross income from OB activities at R Other gross income item 6.
Include total expenses from OB activities at S All other expenses item 6.
You do not need to separate gross income or total expenses from OB activities into the various income and expenses categories that appear at item 6. These categories only apply to income and expenses that do not relate to OB activities. To get the effective 10% tax rate on OB activity income, section 121EG of the ITAA 1936 reduces the assessable income and allowable deductions from OB activities so that an OBU’s taxable income includes only the ‘eligible fraction’, currently 10/30, of its net income from OB activities.
Calculation of the offshore banking unit adjustment P Offshore banking unit adjustment ensures that the
net income from OB activities is taxed at an effective tax rate of 10%. Write at P Offshore banking unit adjustment the difference between the OBU’s net income from OB activities and the eligible fraction:
P offshore banking unit adjustment =
net OB income – (net OB income x eligible fraction) When the amount written at P Offshore banking unit adjustment is deducted from the OBU’s total profit, this results in only the eligible fraction being included at T Taxable income or loss item 7. This is illustrated in the following examples.
EXAMPLE 10
An OBU has income and expenses from various activities as follows: Relating to OB activities $ Relating to non‑OB activities $ Total activities $ Income Interest 200 400 600 Rent – 500 500 Dividends 100 400 500 Total income 300 1,300 1,600 Expenses Rent expenses – 600 600 Interest (within Australia) 200 300 500 Total expenses 200 900 1,100 Net profit 100 400 500
Complete item 6 as follows:
Income $
Gross interest F 400
Gross rent and other leasing and
hiring income G 500
Total dividends H 400
Other gross income R 300
Total income S 1,600
Expenses
Rent expenses H 600
Interest expenses within Australia V 300
All other expenses S 200
Total expenses Q 1,100
Total profit or loss T 500
If this company was not an OBU, the amount of tax payable at 30% on a taxable income of $500 is $150. However, because the company is an OBU, it is entitled to an effective 10% tax rate on its net profit of $100 from OB activities. This is achieved by recording at P the untaxed portion of the net profit from OB activities. In this example, that is calculated as follows:
P = net OB income – (net OB income x eligible fraction)
= $100 – (100 x 10/30)
= $67 (amount shown at item 7)
As a result, the taxed portion is $33 and is the only part of the net profit from OB activities included at T Taxable income or loss item 7.
Item 7 in this example contains the following entries:
Total profit or loss amount shown at T item 6 $500
Less:
Offshore banking unit adjustment at P $67
Taxable income or loss at T $433
The tax payable at 30% on a taxable income of $433 is $130, which is the same as the total of the tax payable on:
Taxable non-OBU activity income of $400 at 30% $120
Plus:
Taxable OBU activity income of $100 at 10% $10
Tax payable $130
OBU LOSSES
Do not use P to record a loss from OBU activities. If a loss is incurred, make the adjustment at W
Non‑deductible expenses item 7 to ensure that the company is taxed at the correct rate. The adjustment is made by inserting the following amount at W:
net OB loss – (net OB loss x eligible fraction)
EXAMPLE 11
An OBU has income and expenses from various activities as follows: Relating to OB activities $ Relating to non‑OB activities $ Total $ Gross income 200 1,300 1,500 Expenses 300 900 1,200 Net income (100) 400 300
Although the company’s net income is $300, its taxable income is actually $367. This is because only 10/30 (the eligible fraction) of the income and expenses from OB activities is taken into account in calculating an OBU’s taxable income, that is:
Net income from non-OB activities $400
Less:
Loss from OB activities (100 x 10/30) $(33)
Taxable income $367
W = net OB loss – (net OB loss x eligible fraction)
= $100 – (100 x 10/30) = $67
In this example, the company tax return would show the following entries:
Item 6 Total income S $1,500
Total expenses Q $1,200
Total profit or loss T $300
Add:
Item 7 Non-deductible expenses W $67
Taxable income or loss T $367
For more information on the taxation of OBUs, see Taxation Determinations TD 93/202 to 93/217, TD 93/241, TD 95/1 and TD 95/2.
Exempt income
Write at V Exempt income all income that is exempt from Australian tax.
Do not include at V Exempt income amounts that
are not assessable income and not exempt income, for example, any foreign income amounts that are treated as non-assessable non-exempt income under sections 23AH, 23AI, 23AJ, 23AK or 99B(2A) of the ITAA 1936. Include these amounts at Q Other income not included in assessable income item 7.
Do not include at V income exempt under an RSA.
Exempt income from RSAs is taken into account in determining the Net taxable income from RSAs at V
item 19.
Other income not included in assessable income Write at Q Other income not included in assessable income income-related adjustments that have to be subtracted from T Total profit or loss item 6 to reconcile with T Taxable income or loss item 7. Do not include again amounts included at C Section 46FA deductions for flow‑on dividends to V Exempt income item 7 here. Generally, the amounts that are included at Q Other income not included in assessable income are income for accounting purposes, but not assessable for income tax purposes.
Write exempt income separately at V Exempt income
item 7.
Include the following items at Q Other income not included in assessable income:
n any excess of gross foreign source income, shown in the income labels at item 6, over the amount that represents assessable income. In calculating the excess, include dividends and other amounts that are not assessable because of sections 23AH, 23AI, 23AJ, 23AK and 99B(2A) of the ITAA 1936. You must complete and attach an International dealings schedule 2013 (NAT 73345) if the company received dividends or other amounts covered by any of these provisions
n any part of an unfranked distribution that is not assessable due to sections 802-15 or 802-20 of the ITAA 1997 (these provisions are relevant to conduit foreign income) n other amounts of non-assessable non-exempt income
(do not include demerger dividends or other amounts not shown at item 6)
n profits on disposal of assets used in R&D activities which are subject to the R&D tax incentive included at R Other gross income item 6
n Australian and foreign source capital gains for accounting purposes that have been included at J Unrealised gains on revaluation of assets to fair value item 6 or R Other gross income item 6. For Australian taxation purposes, include any net capital gain at A Net capital gain item 7
n any excess of a forex gain for accounting purposes, included at item 6, over the assessable forex gain. See Foreign exchange gains and losses on page 9 for more information on the forex measures.
For more examples of specific items, see worksheet 2 on pages 88–91.
TOFA deductions from financial arrangements
not included in item 6
If the company has financial arrangements to which the TOFA rules apply, include at item W TOFA deductions from financial arrangements not included in item 6: n losses allowable under the TOFA rules from financial
arrangements which have not been shown at item 6, and n the company’s deductible transitional balancing
adjustment for the income year as a result of making the transitional election for existing financial arrangements. If you show an amount at W TOFA deductions from financial arrangements not included in item 6, also print X in the Yes box at M Taxation of financial arrangements (TOFA) item 5.
For more information, see Guide to the taxation of financial arrangements (TOFA) rules at ato.gov.au/tofa
Other deductible expenses
Write at X Other deductible expenses expense-related adjustments that are subtracted from T Total profit or loss
item 6 to reconcile with T Taxable income or loss item 7.